Liquidity Premium Hypothesis Based en ecenemisis' forecasis and analysis, one$-$year Treasury bill rates and liquidity premiums for the next four years are expected to be as follows:

$R_1=6\mathrm{.}858$

$E(r_2)=7\mathrm{.}958L_2=\mathrm{.}30\%$

$E(r_3)=8\mathrm{.}058L_3=\mathrm{.}40\%$

$E(r_4)=8\mathrm{.}358L_4=\mathrm{.}45\%$

Using the liquidity premium hypothesis, what is the current rate on a four$-$year Treasury security?

Multiple Choice

$8\mathrm{.}0850\%$

$8\mathrm{.}8000\%$

$7\mathrm{.}8000\%$